House prices edged down in June, according to the latest figures from Nationwide Building Society.

The typical home fell by £540 compared to May to £277,484. 

However, annually, the average price is up 2.2 per cent compared to 1.7 per cent in May. 

It means the typical home is worth almost £6,000 more than June last year - at least on Nationwide's metrics.

Britain's biggest mutual says on a monthly basis, prices are currently flat having adjusted for seasonal effects to take account of months when the housing market is typically more or less active.

'It's a market moving sideways more than it is marching forward,' says Anthony Codling of RBC Capital Markets.

'The headline number tells one story, but the regional picture tells a more interesting one: Northern Ireland is doing its own thing entirely, running nearly four times hotter than the national average, while much of southern England is essentially flatlining.'

Confidence across much of the property market has been dented by a spike in mortgage rates triggered by inflation expectations off the back of the conflict with Iran and yet more political turbulence in the UK.

Mortgage approvals for house purchases dived 14.9 per cent to 56,205 in May, compared to the month before, according to Bank of England data. 

Meanwhile, three in five homes listed for sale since January are yet to sell, according to property listing site Zoopla, with flats being the worst affected.

'It is not surprising that the market has softened a little in recent months, given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates,' said Robert Gardner, chief economist at Nationwide.

'Indeed, consumer confidence and measures of housing sentiment have weakened, and mortgage approvals fell noticeably in May.'

What next for house prices?  

While the housing market is not one entity, it is by and large a buyers' market across much of the country at the moment.

'Even in highly desirable areas buyers are often able to demand - and get - significant price reductions,' says buying agent Jonathan Hopper of Garrington Property Finders, 'while those who are not convinced that a home is 100 per cent right for them won't hesitate to walk away.'

According to Hopper, this is due to three factors - higher interest rates, buyer caution and a sense that they have time and choice on their side.

'While mortgage interest rates have eased in recent weeks, and there are encouraging signs that they may tick down further in coming months, the extra cost of borrowing is still a barrier for mortgage-dependent buyers,' he adds.

'The abundance of choice and lower purchase prices is finally tempting cautious buyers back to the market, but the road back to normality will be long and the prospect of major property tax changes under Britain's latest Prime Minister is a dark cloud for a market still craving clarity and confidence.'